Bank loan owed in Texas

by R Milli
(Houston, Texas)

After my divroce I was stuck with all of the outstanding bills due to my ex wifes bad credit. There is one bill in particular that has been paid down to around $5k but I can no longer make the payments. It has been sent to collection/law firm. What can they do outside of threatening phone calls if I really don't have the funds to pay it?

Comments for Bank loan owed in Texas

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Mar 05, 2012
Bank loan owed in Texas
by: Debtcollectionanswers

When you don't pay a debt, you risk being sued for it and if you lose the lawsuit, the judge will award the creditor a money judgment against you. Then the creditor can try to collect on the judgment by garnishing your wages, taking money from your bank account or putting a lien on an asset that you own. (If those measures are legal in that state. Texas, for example, prohibits wage garnishment in most cases.)

If the creditor is unable to collect on the judgment right away, it will wait until your finances improve and then do so. And, although a judgment is good for only a limited number of years, the creditor is entitled to renew the judgment. So, an unpaid judgment can haunt you for many, many years.

One option for dealing with your situation is to file for bankruptcy. It will stop lawsuits and any other collection actions and you may also be able to use bankruptcy to wipe out your debt. If you want to explore this option, schedule
a free initial evaluation with a bankruptcy attorney. And, go here to learn about how bankruptcy works: how to file for bankruptcy.

Mar 07, 2012
Corrections to above
by: Anonymous

Your wages cannot be garnished for the payment of a debt in the State of is for child support or IRS tax debt. An agency cannot sieze your accounts and go into your bank accounts either and take money out of it.

Collection laws vary from state to state, but as for Texas, a collection agency cannot legally do most of the things the above person is stating.

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